Foreign capital started flowing out of China on a large scale in March. While foreign investors scrambled to sell out Chinese stocks and bonds, state-owned capital has been infilling the market in a bid to maintain its stability and stave off a possible financial crisis. The retreat of foreign capital affected the Chinese stock market, with all three major stock indices in the A-share market falling by more than 11 percent in the first half of March. The Shenzhen Stock Exchange Composite Index fell the most, by 14.26 percent, state-backed financial media Jiemian reported on March 16. However, of note, a chart of northbound capital shows there were large northward fund inflows to “save” the market on March 17 and 18. Northbound capital refers to Hong Kong capital or international funds entering the A-share market, commonly known as foreign capital. Foreign capital is normally not allowed to participate directly in A-share investments …